Urban theory
Encyclopedia
Urbanomics describes the city formation phenomenon where economic priorities prevail to facilitate the city’s propensity to generate and accumulate wealth. Such city formation involves some irreversible spatial investments, massive resource allocations and financial investments recoverable only if anticipated future income transpires. Consequently, it is a pertinent concept in urban planning. Though related, this is not be confused with urban economics where economic principles and tools are applied at macro and micro levels. Urbanomics is to be understood as a paradigm to understand impact of the globalization process on urban development.

Urban theory is an agglomeration of social theories - classical, neo-classical and modern. Reference to social theory assumes the indivisibility of political, social and economic forces. Sustainability is increasingly becoming the lynch-pin of urban studies with triple-line accountability (social, environment and economics) given more emphasis though not necessarily translated to practice. Here, urbanomics, by default, renders environmental and social concerns to subservience.

Urban Theory

Theoretical discourse has often polarized between economic determinism
Economic determinism
Economic determinism is the theory which attributes primacy to the economic structure over politics in the development of human history. It is usually associated with the theories of Karl Marx, although many Marxist thinkers have dismissed plain and unilateral economic determinism as a form of...

 and cultural determinism
Cultural determinism
Cultural determinism is the belief that the culture in which we are raised determines who we are at emotional and behavioral levels. This supports the theory that environmental influences dominate who we are instead of biologically inherited traits....

 with scientific or technological determinism
Technological determinism
Technological determinism is a reductionist theory that presumes that a society's technology drives the development of its social structure and cultural values. The term is believed to have been coined by Thorstein Veblen , an American sociologist...

 adding another contentious issue of reification. Studies across eastern and western nations have shown that certain cultural values promote economic development
Economic development
Economic development generally refers to the sustained, concerted actions of policymakers and communities that promote the standard of living and economic health of a specific area...

 and that the economy in turn changes cultural values. Urban historians were among the first to acknowledge the importance of technology in the city. It embeds the single most dominant characteristic of a city; its networked character perpetuated by information technology . Regardless of the deterministic stance (economic, cultural or technological), in the context of globalization
Globalization
Globalization refers to the increasingly global relationships of culture, people and economic activity. Most often, it refers to economics: the global distribution of the production of goods and services, through reduction of barriers to international trade such as tariffs, export fees, and import...

, there is a mandate to mold the city to complement the global economic structure and urbanomics gains ascendancy.

Globalization and Economic Capital

The notion of urban’ is derived from ‘urb’ which refers to the built city and ‘civitas’ which refers to feelings, rituals and convictions that define urban life. It connotes a dialectic relationship between materialism and ideas. This can be related to the ‘sense of place’ that Bourdieu refers to as ‘habitus’. He makes reference to symbolic capital – an appropriation of how things should be; that can be individualistic or collectively expressed. This concept has been well received in urban theory.

Architects focus on symbolism, engineers on quality standards, urban planners on land use and zoning and landscape artists on aesthetics, environmentalists on depletion of natural resources and climatic consequences, social-cause groups on the economically marginalized and residents on saving suburbs from degradation of neighborhood character. Symbolism has many facets but its cumulative capital does not provide a convincing wealth generation (economic capital) model as an alternative to prosper the city.

Economic Sustainability

In fact, urbanomics can spillover beyond the city parameters. The process of globalization extends its territories into global city regions. Essentially, they are territorial platforms (metropolitan extensions from key cities, chain of cities linked within a state territory or across inter-state boundaries and arguably; networked cities and/or regions cutting across national boundaries) interconnected in the globalized economy. Some see global city-regions rather than global cities as the nodes of a global network.

The rules of engagement are built on economic sustainability – the ability to continuously generate wealth. The cornerstones of this economic framework are the following ‘4C’ attributes: (1) currency flow for trading, (2) commoditization of products and services in supply chain management, (3) command centre function in orchestrating interdependency and monitoring executions and (4) consumerization. Unless, decoupling the economy from these attributes can be demonstrated; symbolic capital expressions as legitimate as they may be; must accept the domineering status of urbanomics.

Revisiting Economic Measurements

Arguably, the culprit of this economic entrapment is the high consumption lifestyle synonymous with affluence. The resolve may well be that ‘less is more’ and that true welfare lies not in rise in production and income. As such, Gross Domestic Product
Gross domestic product
Gross domestic product refers to the market value of all final goods and services produced within a country in a given period. GDP per capita is often considered an indicator of a country's standard of living....

 (GDP) is increasingly being questioned as inaccurate and inadequate. GDP includes things that do not contribute to sustainable growth and excludes non-monetary benefits that improve the welfare of the people. In response, alternative measures have been proposed such as the Genuine Progress Indicator
Genuine Progress Indicator
The genuine progress indicator is an alternative metric system which is an addition to the national system of accounts that has been suggested to replace, or supplement, gross domestic product as a metric of economic growth...

 (GPI) and the Index of Sustainable Welfare - ISEW.

See also

  • Rural economics
    Rural economics
    Rural economics is the study of rural economies, including:* farm and non-farm industry.* economic growth, development, and change * size and spatial distribution of production and household units and interregional trade* land use...

  • Urban economics
    Urban economics
    Urban economics is broadly the economic study of urban areas; as such, it involves using the tools of economics to analyze urban issues such as crime, education, public transit, housing, and local government finance...

  • Urban decay
    Urban decay
    Urban decay is the process whereby a previously functioning city, or part of a city, falls into disrepair and decrepitude...

  • Urban development
  • Urban planning
    Urban planning
    Urban planning incorporates areas such as economics, design, ecology, sociology, geography, law, political science, and statistics to guide and ensure the orderly development of settlements and communities....

The source of this article is wikipedia, the free encyclopedia.  The text of this article is licensed under the GFDL.
 
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